The U.S. Institute for Supply Management reported today that its index of manufacturing activity moved to 50.8 in November compared to 50.9 in October and 52.0 in September.
Readings above 50 point to expansion in activity. Economists had expected the November index to be 50.7.
“Manufacturing continued to grow during November, a trend that is now in its 10th month,” stated Norbert Ore, who directs the ISM manufacturing survey. “While other segments of the economy are struggling, manufacturing continues to grow due to continuing strength in new orders, and a recovery in production from last month.”
In the report, the group noted a rise in inflation pressures, with the prices index at 67.5 versus October’s 63.0. The index stood at 59.0 in September. Meanwhile, the ISM’s manufacturing employment index was 47.8 last month; it was 52.0 in October. The inventories index stood at 46.9, after 47.2 the prior month.
“Prices, driven higher by energy prices, are once again the major concern,” said Ore.
Also, production ramped up modestly, the report said, with that measure rising to 51.9 in November from the prior month’s 49.6, while the new orders index came in at 52.6 in November from October’s 52.5.